Tax Credits

Working Tax Credit (WTC) and Child Tax
Credit (CTC) were introduced for the first time in 2003/04. Provisional
claims for that year were based on 2001/02 income, and shortly have
to be revised to take into account actual 2003/04 income. The rates
of WTC and CTC for 2004/05 have been in many cases increased in
line with inflation, but some elements have not (e.g. the amount
of childcare cost that the Revenue will cover). The full table of
rates is too large and complex for this brief summary.

Until now, WTC (like its predecessor Working Families Tax Credit)
has usually been paid by employers through the payroll. To reduce
burdens on business, the Revenue are consulting on the possibility
that WTC will be paid directly to the claimant by the authorities.